Rengo Co (3941) investor relations material

Executive summary

• Net sales rose to 275.8 billion yen, up 10.6% year-over-year, with operating profit increasing 72.5% to 17.9 billion yen and profit attributable to owners of parent up 92.8% to 11.6 billion yen, driven by product price revisions and increased demand despite higher fixed costs.

• All major business segments reported higher sales and profits, with notable gains in flexible packaging, heavy duty packaging, and overseas operations.

Financial highlights

• Net sales: 275.8 billion yen (up 26.4 billion yen year-over-year).

• Operating profit: 17.9 billion yen (up 7.5 billion yen year-over-year).

• Ordinary profit: 18.9 billion yen (up 8.4 billion yen year-over-year).

• Profit attributable to owners of parent: 11.6 billion yen (up 5.6 billion yen year-over-year).

• Gross profit increased to 57.0 billion yen from 47.1 billion yen year-over-year.

Outlook and guidance

• Full-year forecast remains unchanged, projecting net sales of 1,090.0 billion yen and operating profit of 46.0 billion yen for FY ending March 2027.

• Profit attributable to owners of parent forecast at 31.0 billion yen, up 47.6% year-over-year.

• No revisions to previously announced forecasts due to ongoing uncertainties.

• Raw material, logistics, and labor costs expected to rise, but prior product price revisions should support earnings.

• Japanese economy expected to recover gradually, but global uncertainties persist, especially regarding the Middle East and financial markets.